True Elements looks to raise ₹75-100 crore in fresh round

Abhishek Law Kolkata | Updated on October 27, 2021

To focus on brand-building and expansion in both domestic, overseas markets


Six-year-old healthy breakfast and snacks start-up brand, True Elements, is eyeing fund infusion to the tune of ₹75-100 crore, its largest ever capital raising in recent times. The money raised will be used for brand-building and expansion in both the domestic market and overseas.

Talks are on with private equity firms and the fundraise may be completed over the next three-six months, according to the company co-founder and CEO, Puru Gupta. The company raised around ₹14-16 crore in tranches of ₹2– 6 crore in previous rounds of fund-raising.

“Our last fund-raising talks coincided with the outbreak of pandemic in India, around March 2020, and we had to water it down substantially. As macros have improved and VCs have renewed interest, we are now looking to raise ₹75-100 crore,” he told BusinessLine.

True Elements reported a turnover of ₹40 crore in FY21 and a cash profit. It looks to double turnover to ₹75 crore for FY22. The company’s monthly sales are at about ₹6 crore.

“The categories we operate in are seeing increased traction and accordingly witnessing an increased clutter of participating brands. Hence, investing in brand building would be critical for our next leg of growth and from a long-term equity building perspective,” Gupta said.


According to him, True Elements has placed itself as a niche D2C player. The company will look at driving brand salience and building high recall. The aim is not to be a premium player, but be in the range of the nearest branded competitor. “We will also invest in increasing physical availability, especially in modern trade format stores, which are known to have high cost-to-serve,” Gupta added.

The breakfast and snacks segment is a $10 billion market in India. However, the company’s sphere of operations places it at a premium, operating mostly online or in upscale modern retail chains. Offline sales are about 20 per cent of its turnover.

Breakfast offerings include mixes for Indian regional offerings such as dosa, poha, upma, and western breakfast offerings like muesli, wheat flakes and pancakes. Snack offerings include seed-based offerings like pumpkin seeds and watermelon seeds. It recently launched products including Oats Shake & Dessert Mix. Breakfast offerings account for about 50 per cent of its portfolio.

In India, regional food preferences dominate the breakfast segment, where there are players like Kelloggs, iD fresh Foods and MTR, among others. One out of every three people in the country skips breakfast, reports suggest. Snacking though is mostly from extruded offerings or fried foods like samosa, chips, aloo bhujias, among others.

The company is extending presence to 20 countries including Europe, South Asian nations, Australia, Canada and West Asia. Certification processes are on. It is already present in five countries — Nepal, Singapore, the US, Mauritius, and Dubai.

True Elements was recently awarded a Clean Label certification.

Published on October 27, 2021

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